Bi-Partisan Economic Development Request | Eastern NC Now

News Release:

    Remaining elements of S 763 and H 1224 need enactment

    Jobs remain the most important issue facing North Carolina. Our government does not create jobs; however, it creates the environment in which job creators flourish. In the past, the North Carolina Department of Commerce has offered financial incentives to many strategic high growth industries. But, several excellent provisions of S 763 and H 1224 that encourage capital expansion, job creation and innovation, capital reinvestment, job retention, and economic growth were not fully addressed by the North Carolina General Assembly in the waning days of the 2014 short session.

    Without these basic economic development tools, our state is not competitive globally or in the Southeast United States. Without a strong tool box, each local economic development office, the new Public Private Partnership (PPP), and new prosperity zone employees are all unable to effectively "position" our state and maximize the components of Governor McCrory's jobs plan. The list below constitutes the elements that we feel must be in a bi-partisan package of critically needed legislation in order for North Carolina to be competitive.

    •   Job Development Investment Grant (JDIG) Expansion- With the elimination of the Bill Lee Act, this remains North Carolina's primary recruitment tool. This is a highly successful program with strong legal claw-backs and excellent performance based program design. Without new JDIG authorization and expansion, we are functionally "on the sidelines" as a state until the legislature meets again next year. This must be fixed now if North Carolina is to sustain the "Carolina Comeback".

    •   Crowdfunding - This is an excellent incentive accomplished through legal clarification that recognizes the changing nature of how money is raised and new small ventures are financed. Small businesses often become large employers in our state. The Research Triangle and the entire state strive to be a place where the government supports entrepreneurship and risk taking as traits that are valued here. Some of our direct competitors are active in this area of Crowdfunding.

    •   Job Catalyst "Closing Fund" - Governor McCrory and Secretary Decker feel they need this fund, and they are ultimately held responsible for the economic competitiveness of our state. We support additional language that the allocation of these funds must be approved by the same committee that approves JDIG applications, rather than leave the responsibility to one person. This fund should be allocated to certain transformative projects identified to the North Carolina General Assembly and not used for supplemental purposes. In other words, it needs to be for "special circumstances" and not as an everyday tool.

    •   Renewable Energy Tax Credit- Extension of the highly successful Renewable Energy Tax Credit has done more for adding to the property tax base of poor rural counties than most any program the General Assembly has devised in recent years. A pair of $30 million solar farms in a county is a welcome addition and good economic development policy in these rural areas.

    •   Film Tax Credit- Extension for one year of the current film credit while the legislature examines the true cost/benefit relationship of this tax policy is vital. The accuracy of claims on both sides of this credit debate needs further validation. Until then, we should not displace 4,200 well-paying jobs from our state.

    •   Historic Rehabilitation Tax Credit - This long standing program needs to be reauthorized. It is one of the few tools to encourage rehabilitation of commercial buildings in small towns and cities across the state. The credit is especially helpful in our smaller communities to create the type of re-investment we need to keep these communities vibrant.

    Since adjournment, our economic development professionals, county commissioners and city councils have all contacted us and advised that the lack of appropriate authorizing language has crippled the traditional economic development tools of the North Carolina Department of Commerce. We the undersigned respectfully request that Governor Pat McCrory call legislators back to Raleigh for a special session to address the remaining job creation items that were left undone.

    Representative Susi Hamilton
      District 18,     Serving Brunswick and New Hanover Counties

    (919) 733-5754  •  susi.hamilton@ncleg.net